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May 27, 2020
Can a missed rebate really affect your hospital? The answer is yes! One of our clients in the northeast nearly missed out on a rebate of $250,000, the equivalent of purchasing a new ultrasound machine, covering the salaries of 3 – 4 RNs, or buying a new mammography system. This client did not have an effective tracking program costing them millions in missed rebates each year. Fortunately, the rebate was discovered and resolved during an audit of their procure-to-pay data. Ensuring all rebates are actually realized is pivotal in ensuring a healthcare system’s saving targets are met. no-repeat;left top;;auto Why […]
November 8, 2018
Offering rebates and reimbursements may make a vendor an attractive partner for major health systems. However, if you aren’t monitoring these benefits, you could be leaving money on the table. For example, early-pay reimbursements are offered by vendors as a way to receive payments quicker while providing cost savings to their customers. A recent TAG client made the mistake of deducting the wrong amount from their early-pay invoice, which in turn cost more than $45,000. What Can Cause a Hospital to Lose Reimbursements? We’ve said it before, and we’ll say it again—proper vendor and contract management is crucial to a […]
August 13, 2018
Many vendors offer rebate promotions in which your system may be credited a certain amount for your purchases during a specified time period. However, vendors aren’t always the most transparent about how these credits will be issued, and procurement departments may end up paying the full invoice price without knowing it. We recently worked with a client that was entitled to a $100,000 rebate but had no idea that they missed it–or that it was even on its way. Rebates are a great way to earn vendor credit on some of your most common purchases, but if they aren’t handled […]
April 5, 2018
Large healthcare organizations can have thousands of active vendors. Every day, purchases are made, contracts are signed, and items are returned. All of this activity can cause details to slip through the cracks, making it very important to closely monitor rebates and discounts offered by vendors. Don’t let an opportunity for cost-savings go missed. Oftentimes, vendors will offer promotional discounts and rebates based on the large volume that their healthcare clients purchase during a pre-set time frame. Over time, if your health system is not taking advantage of rebates, the amount of money lost grows. Keep an Eye on Contract […]
September 7, 2017
At any large healthcare system, vendor rebates can be difficult to manage. Because they require a multi-step process to track dollars earned, credits issued, and monies paid, rebates cause tracking challenges for Accounts Payable departments. Rebates Versus Lower Contract Pricing Oftentimes, vendors use rebates as a key part of their pricing strategy and structure. This tactic makes their pricing more attractive to potential clients. When tracked through Accounts Payable and issued correctly, rebates can help healthcare organizations save some money. That being said, inconsistent tracking is the primary problem with vendor rebate programs. Some vendors pay rebates via check refunds, […]
